IMF Staff Country Reports

Greece: Preliminary Debt Sustainability Analysis-Updated Estimates and Further Considerations

May 23, 2016

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Greece: Preliminary Debt Sustainability Analysis-Updated Estimates and Further Considerations, (USA: International Monetary Fund, 2016) accessed November 23, 2024

Summary

This paper provides preliminary debt sustainability analysis (DSA) of Greece. Debt was deemed sustainable, but not with high probability, when the first program was adopted in May 2010. The much deeper-than-expected recession necessitated significant debt relief in 2011–12 to maintain the prospect of restoring sustainability. Serious implementation problems caused a sharp deterioration in sustainability, raising fresh doubts about the realism of policy assumptions, especially from mid–2014. Developments since last summer suggest that a realignment of critical policy, and DSA assumptions can no longer be deferred if the DSA is to remain credible. Staff believes that revised program targets remain sufficiently ambitious to warrant continued support from Greece’s European partners.

Subject: Asset and liability management, Debt relief, Debt sustainability, Debt sustainability analysis, External debt, Financial institutions, Fiscal policy, Fiscal stance, Loans

Keywords: Africa, CR, Debt burden benchmark, Debt path, Debt relief, Debt restructuring, Debt restructuring modality, Debt restructuring scenario, Debt restructuring solution, Debt sustainability, Debt sustainability analysis, Debt sustainability consideration, DSA risk assessment, Fiscal stance, GDP, GLF loan tranche, Greece, Gross financing, Interest rate, ISCR, Loans, Proceeds, Public sector Debt Sustainability Analysis, Restructuring scenario

Publication Details

  • Pages:

    23

  • Volume:

    ---

  • DOI:

    ---

  • Issue:

    ---

  • Series:

    Country Report No. 2016/130

  • Stock No:

    1GRCEA2016001

  • ISBN:

    9781484362099

  • ISSN:

    1934-7685

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